Adult Day Care Center Busted for $3.2 Million of Medicare Fraud

Michigan based New Century Adult Day Program Services LLC and New Century Adult Day Treatment Inc. (collectively New Century) have been convicted for $3.2 million in Medicare fraud as part of a scheme to defraud the government.

According to the announcement from the Department of Justice, Glenn English, 53, and Richard Hogan, 67, were found guilty of health care fraud by the District Court of the Eastern District of Michigan. Mr. English was additionally convicted of one count of conspiracy to commit health care fraud and six other counts of health care fraud.

The scheme was to encourage mentally disabled residents of area adult foster care homes and individuals seeking narcotic drugs to register with their facilities. The registrant’s names would then be used to bill Medicare for psychotherapy that the facility was not providing.

“The practice of preying on vulnerable individuals, earnestly in need of assistance, is deplorable,” commented James Kauffman, an attorney with the Levin, Papantonio law firm who practices in the area of qui tam or whistleblower and False Claims Act litigation. “Unfortunately, stories like that of Mr. English and Mr. Hogan are all too common. Seeking to defraud the government, entities and individuals all too regularly sacrifice the care of the patients in their charge.”

English further directed his employees to falsify and make up documents that supported that the facility was providing psychotherapy to its tenants.

The fraud in this case was discovered and investigated as part of the ongoing efforts of the Medicare Fraud Strike Force in coordination with other government entities.

“The fraud that was seen here is regrettably all too common,” Mr. Kauffman continued. “Without the efforts of a whistleblower, it will often go unchecked.”

Joshua is a writer and researcher with Ring of Fire. You can follow him on Twitter @Joshual33.